CurrencyFair review: Fees, rates and transfer time

If you’re planning on sending money abroad, it pays to do a little research before you choose a payment provider. There are many different services to choose from - with different fees, currency exchange rates and payment products on offer.

This CurrencyFair review will tell you all you need to know about sending money overseas with CurrencyFair, including the costs, processing times and exchange rates used. We’ll also cover an alternative to use as a comparison - currency specialist Wise - to help you find the right service for your needs.

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How does an international transfer with CurrencyFair work?

CurrencyFair offer international payments to a range of countries and currencies. You’ll need to first register online for a free account, and then model the payment you want to make. This will show you the foreign exchange rate which will be applied, as well as the fees you’ll need to pay. Once you’ve reviewed this, you can send your money to CurrencyFair by bank transfer. Once the payment has been received by CurrencyFair, they will then pass it on, in your chosen currency, to your recipient.¹

Before you decide whether or not to use CurrencyFair for your international payment, you’ll want to check out the costs and convenience of the service. It’s worth knowing that there are plenty of choices out there when it comes to international payment providers. Compare CurrencyFair with alternative international payment specialists like Wise before you make your final decision, to make sure you get the best deal.

Wise make all international payments using the mid-market exchange rate with no currency exchange spread or markup added. Instead you just pay an upfront fee which can work out to be much cheaper than using a regular bank.

You can also get a multi-currency Wise borderless account, which lets you hold your money in over 40 currencies, send and receive international payments, and get your own local bank details to receive money like a local in major currencies like US, Australian and New Zealand dollars, euros and British pounds. More on Wise a little later.

What are the fees when you want to transfer money overseas with CurrencyFair?

Once you have created a CurrencyFair account, you can use the tools available online to model the specific payment you want to make. This allows you to see the fees and charges you’ll need to pay.

It helps to know there are several different fees to look at, depending on the way you fund the payment, the currency you want to send, and the specific payment route used. Here’s what you need to know:

CurrencyFair fee type	Cost ² ³ ⁴ ⁵
Paying money into CurrencyFair	Bank transfer - no fee applied by CurrencyFair, although your own bank might add a charge. More on that later. Express deposit - depending on the country of issue, you may be able to make an express deposit using your Visa or MasterCard. However, this service is not available when using a card issued in Canada. If you have an eligible card issued elsewhere, there will be a fee to make an express deposit of either 0.25% or 0.5% of the transfer amount
Exchange rates and costs	CurrencyFair is an exchange marketplace. That means that the currency exchange rates used may be set by other users. These rates may be better or worse than the mid-market exchange rate. If the specific transfer you wish to make isn’t matched with another user, CurrencyFair will set a rate for your transaction instead. When the rate has been set, whether by another user or CurrencyFair, CurrencyFair will then take an additional fee called a currency exchange spread. The currency exchange spread when matched with another user will be between 0.25%-0.3% of the transaction value. If CurrencyFair set the exchange rate themselves, the fee will be between 0.4%-0.6%. Finally, you’ll also pay a small fixed fee of the equivalent of EUR3 in whichever currency you’re sending.
Fees imposed by sending bank or intermediary	If you’re sending money from Canada to CurrencyFair to fund your transfer, you need to know that there may be additional fees associated with the SWIFT network. CurrencyFair warn that you may pay an international transfer fee imposed by your own bank, as well as fees charged by an intermediary bank. More on this below.

CurrencyFair offer specific guidance about the fees you’ll pay if you’re sending money from Canada. That’s because you may encounter extra costs charged by your own bank, or because of the use of the SWIFT network for processing your payment. Here’s what CurrencyFair say:

“CurrencyFair Canadian Dollar account is held in Dublin. Your bank will charge an international transfer fee when sending in money.

There is also an intermediary bank which may deduct a fee. Contact your bank for exact information on any applicable fees.” ⁵

The SWIFT network is a common way of processing international bank transfers. It involves several banks working together to get your money where it needs to go. These banks are known as intermediary banks, and pass the payment between themselves to get it to the right account. Each intermediary can deduct their own charge from the amount being transferred as they handle it if they choose to do so.

SWIFT costs can come as a surprise and may mean your recipient gets less than you expect in the end as extra fees have been deducted as your payment is being processed. It’s well worth checking with your own bank what the intermediary fees may be, to avoid any nasty surprises later.

It’s good to know that there are alternatives out there which don’t use the SWIFT network for processing payments. You may find you’re better off making your international payment using Wise for a smart new approach which avoids the SWIFT network entirely for most transfers.

You could also benefit from a Wise borderless account to hold multiple currencies in one place, and send, spend and receive money online in foreign currencies.

What are the currencies that CurrencyFair supports?

CurrencyFair can receive payments in the following currencies:⁵

• Australian dollars.
• British pounds.
• Canadian dollars .
• Czech koruna.
• Danish krone.
• Euros.
• Hungarian forints.
• Norwegian krone.
• New Zealand dollars.
• Polish zloty.
• South African rand.
• Swedish krona.
• Swiss francs.
• United Arab Emirates dirham.
• US dollars.

You can then transfer out money in any of these currencies:⁵

• Australian dollars.
• British pounds.
• Canadian dollars.
• Czech koruna.
• Danish krone.
• Euros.
• Hong Kong dollars.
• Hungarian forints.
• Indian rupees.
• Israeli shekels.
• Norwegian krone.
• New Zealand dollars.
• Polish zloty.
• Singapore dollars.
• South African rand.
• Swedish krona.
• Swiss francs.
• United Arab Emirates dirham.
• US dollars.

If you’re looking for a different currency, or simply want to compare the prices and services on offer, check out the currencies Wise cover, here.

What is the exchange rate you get with CurrencyFair?

You’ll be able to see the exchange rate on offer for your particular currency pairing, when you model your payment online. Exchange rates used by CurrencyFair may be set by other users, or CurrencyFair themselves, and will include fee called a currency spread. The best way to see if you’re getting a good deal is to compare the rate offered with the mid-market exchange rate, which you can find easily online.

The mid-market rate is a good benchmark because it’s the currency conversion rate used when banks and exchange services buy and sell money on the international markets. By looking at this you can see the markup or spread added to calculate the rate you’ve been offered. To get the mid-market rate for your pairing, use an online currency converter, or a simple Google search.

Are there any limits to the amount that you can transfer with CurrencyFair?

Depending on the currency you’re sending, and the way you wish to fund your transfer, you may find there are limits applied. To check out the details for your specific payment, you can model it online on the CurrencyFair website.

How long does an international transfer with CurrencyFair take?

When you’re setting up your CurrencyFair payment you’ll want to know when your money will be received. There are two different stages to making a transfer with CurrencyFair. Firstly your money needs to be received and cleared by CurrencyFair, and then they need to pass it on to your recipient in your chosen currency.

The exact time the process takes depends on the currencies involved. You can check out the details for your particular payment route online. To give an example, assuming you’re funding your payment using a Canadian dollar bank transfer, the chances are that it’ll take 2 to 3 business days for CurrencyFair to clear your payment. They’ll then pass it on to your recipient - this could take a further working day or two if you’re making a payment to someone in Australia or the euro area, for example.⁵

You’ll be able to find all the details for your particular payment, and any relevant cut off times, on the CurrencyFair website.

How can you contact CurrencyFair?

If you have a question, you may find the information you need in the CurrencyFair online support centre. Alternatively, you can connect with a member of the support team using the contact from provided on their website. You’ll then get a response within 24 hours.

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If you’re looking for a cheap and convenient way to send money abroad, it’s worth investing some time in comparing the different services available for your transfer. That way you can find the best deal on both the charges and exchange rates used, leaving you with more money for yourself, and less spent on international transfer fees.

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Sources:

1. CurrencyFair - How it works
2. CurrencyFair - Pricing
3. CurrencyFair Support Centre Are there any fees for sending money into CurrencyFair?
4. CurrencyFair Support Centre Express Deposits
5. CurrencyFair - How Long Does It Take To Exchange Currency?

All sources checked 12 August 2019